Full budget speech of the PM – sessions adjourned
Posted on November 17th, 2020

Courtesy  Hiru News

https://drive.google.com/file/d/1lMO42oewnZzRT1SaMU2oWUOW5ieQUjrt/view

PM making the budget speeach today said “It is with great pleasure that I present the budget speech 2021, which focuses on strengthening the 2021-2023 medium term programme of poverty alleviation and economic revival as envisaged within the “Vistas of Prosperity and Splendour”, the policy framework of the government of HE the President Gotabaya Rajapaksa”

Macro-Economic Road Map

According to the macro-economic programme of Vistas of Prosperity and splendour”, our target is to maintain an inclusive growth rate of 6 percent over the medium term.

Various proposals and concessions were shared by the Prime Minster (the full speach can be accessed <a href=”https://drive.google.com/file/d/1lMO42oewnZzRT1SaMU2oWUOW5ieQUjrt/view?usp=sharing“>Full Budget Speech English

Conclusions

Concluding the presentation the PM stated the following;

Honourable Speaker,

This is a development budget presented to elevate an economy that has been shattered. It covers all sectors under a macroeconomic vision aimed at fulfilling the Vistas of Prosperity and Splendour”. This is a budget that will open up numerous special investment opportunities to our business community for production of local goods and services under the competitive setting of the global economy. Producers of all scales should strive during the next 3 years to allow local economy to competitively enter to the global economy. The public sector should provide the necessary support in this regard.

For the benefit of the country, I request from all entrepreneurs to utilize the funds hidden locally or internationally in order to evade laws relating to taxes and foreign exchange. It is expected to make legal provisions to provide a tax pardon to entrepreneurs thus utilizing funds for any investment facilitated by this budget under the payment of taxes amounting to 1 percent.

The estimated Government Revenue for 2021 is Rs. 1,961 billion. The total Government expenditure is Rs. 3,525 billion and as such the difference between the revenue and the expenditure is Rs. 1,564 billion. It is planned to maintain the budget gap at 9 percent of the GDP since the private investments which amounted to 32.3 percent of the GDP in 2014 has decreased up to 27.6 percent in 2019 and since it is required to provide a robust start by the government to revive the economic growth which had stagnated recently.

I believe that we can manage this budget gap, due to enhanced opportunities to reissue local and international currency denominated debt at maturity. Interrelated development proposals presented under this budget are appropriate for rural as well as urban settings, traditional as well as modern contexts, micro financial as well as capital market objectives will lead to an increase of the present low level of economic capacity utilization. The expected economic growth rate for 2021 is 5.5 percent.

I emphasize that it is our medium term vision to reduce the budget gap through increasing the economic growth up to 6 percent and increasing the government revenue from its current level of 9.7 percent to 14.1 percent. By 2025, the budget deficit is targeted to be 4 percent due to growth in tax revenue through the expansion of the economy and the trust placed on the management of public expenditure and public enterprises. I request all of you to give your blessing to the development budget aimed at economic revival and poverty reduction”

Full budget speech of the Prime Minister can be accessed here

English <a href=”https://drive.google.com/file/d/1lMO42oewnZzRT1SaMU2oWUOW5ieQUjrt/view?usp=sharing“>Full Budget Speech English</a><br /><br />Sinhala <a href=”https://drive.google.com/file/d/1gZvY52j4_w8actKohSxutnZGJ4H92b1A/view“>Budget Speech Sinhala<br /></a>

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